Journal

Forex Market stalling before the big nonfarm payroll employment report

We did not see any movement during the New York session at forex market one day before the nonfarm payroll report. Most of the pairs were in RANGE. There was no direction or trending market. EurJpy was aggressively going south 40 minutes before the market open so i was very excited. But that’s about it, it stalled right there through out the entire session. I could bank +14 pips out of it. Usually this is what happened a day before the big NFP employment report. Big traders wait for the news as they would invest their money on NFP friday therefore market gets really slow. I’m usually vigilant during any major news so i kinda knew i won’t get any follow through in the session.

pullback
EurJpy 15 minutes chart 5th May 2016

As i said EJ was the only pair that was moving so i positioned myself and registered a pending SELL order on a pullback just 15 minutes before the NY open. However, i was quickly stopped out with -10 pips. Then i had another pending SELL order at 122.50 as you can see from the picture. This trade was triggered and i was looking for this trade to run down and give me at least +50 pips. As it turned around, nothing happened. The trade actually hanging out in that area for the next 3 hours or so. Finally i lost my patience and took +14 to cover my loss.

So ending the day on a Break event. Not very productive week for me. Infact i’m on minus as i had very bad Monday. I could not recover from it.  I’m not going to trade on Friday this time as it is a NFP week. Price will be extremely volatile. Too risky for my type of forex strategy as i play with small stop losses.

So am i sad ? absolutely NOT. It happens and i need accept the reality. I have to practice how to make my WINS bigger than my losses.

Cheers,

5th May 2016

 

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